Michigan No-Fault Law, section by section › MCL 500.3142
Personal protection insurance benefits payable as loss accrues; overdue benefits; interest.
In plain terms
PIP benefits are payable as loss accrues and are overdue if not paid within 30 days after the insurer receives reasonable proof of the fact and amount of loss. Since 2019, if a provider's bill is not submitted within 90 days of the service, the insurer gets 60 extra days. Overdue benefits bear simple interest at 12% per year.
How this section works in practice
PIP benefits are due as each loss accrues, and this section sets the clock for paying them. A benefit is overdue if the insurer has not paid within 30 days after receiving reasonable proof of the fact and amount of the loss. If proof supports only part of the claim, that part becomes overdue on its own schedule. Payment counts as made on the day the check is mailed.
The 2019 amendment added subsection (3): if a provider's bill is not submitted within 90 days after the service, the insurer gets an extra 60 days before the benefit is overdue, a rule aimed at late-billing providers. Subsection (4) is the penalty: overdue benefits bear simple interest at 12% per year, which an insurer owes regardless of whether its delay was reasonable. Penalty interest is different from the attorney fee in section 3148, which requires an unreasonable refusal or delay. The practical use of this section is to document exactly when the insurer received proof of each expense; that date, not the date of service, starts the 30 days.
Text of MCL 500.3142
Sec. 3142.
(1) Personal protection insurance benefits are payable as loss accrues.
(2) Subject to subsection (3), personal protection insurance benefits are overdue if not paid within 30 days after an insurer receives reasonable proof of the fact and of the amount of loss sustained. Subject to subsection (3), if reasonable proof is not supplied as to the entire claim, the amount supported by reasonable proof is overdue if not paid within 30 days after the proof is received by the insurer. Subject to subsection (3), any part of the remainder of the claim that is later supported by reasonable proof is overdue if not paid within 30 days after the proof is received by the insurer. For the purpose of calculating the extent to which benefits are overdue, payment must be treated as made on the date a draft or other valid instrument was placed in the United States mail in a properly addressed, postpaid envelope, or, if not so posted, on the date of delivery.
(3) For personal protection insurance benefits under section 3107(1)(a), if a bill for the product, service, accommodations, or training is not provided to the insurer within 90 days after the product, service, accommodations, or training is provided, the insurer has 60 days in addition to 30 days provided under subsection (2) to pay before the benefits are overdue.
(4) An overdue payment bears simple interest at the rate of 12% per annum.
History: Add. 1972, Act 294, Eff. Mar. 30, 1973 ;-- Am. 2019, Act 21, Imd. Eff. June 11, 2019
Source: MCL 500.3142 at legislature.mi.gov (official text). Text as published in the 2025 Michigan Compiled Laws; reviewed by Koussan Law on September 15, 2026.
Sections this one refers to
- MCL 500.3107: What PIP Pays: Medical, Wage Loss, Services
Practice pages
Important: This is not legal advice
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